Business Plan for Walmart's Entry into a New Market

This report analyzes the business plan for Walmart's entry into a new market, including situational analysis, marketing strategies, entry strategies, operational strategies, and HR strategies. It also discusses the importance of PESTEL and SWOT analysis, as well as the role of budgeting, monitoring, and controlling in the process. The report emphasizes the need for benchmarking to measure growth and development.

Individual Project

Executive Summary
This is an individual project report which has been made for Walmart when entering into
the new market. The report has been assessing the business plan being framed for Walmart. This
has been done by including the situational analysis which consists of PESTEL and SWOT
analysis. Various strategies have been framed which are Operational strategies, entry strategies
into the new market, marketing strategies and HR strategies. Along with this budget has be been
formed and furthermore Key Performance Indicators with monitoring and controlling factors are
being analysed. Benchmarking has also been explained for the company's measurement on
growth and development.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Business Plan ..............................................................................................................................4
Situational Analysis.....................................................................................................................4
Marketing Strategies....................................................................................................................6
Entry Strategies............................................................................................................................7
Operational Strategies..................................................................................................................8
HR Strategies...............................................................................................................................9
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is defined as activities which helps in promoting, buying and selling products
and services of the company (Thomas, 2017). It includes advertising, selling and delivering
products to consumers. Walmart is an American multinational retail corporation that operates a
chain of hypermarkets, discount department stores and grocery stores.
The report will analyse the Business plan being framed for the company with the
situational analysis accounting to PESTEL and SWOT for the organization. The marketing
strategies, entry strategies, operational strategies, HR strategies will assist along with the budget
formed. Monitoring and controlling will be analysed adding up with Key Performance Indicators
and Benchmarking.
MAIN BODY
Business Plan
Mission — To save money of people so that they can live better.
Vision — To be the destination for customers to save money, no matter how they wish they
shop.
Objective — To reach out to new target customers and clients for diversification of market
structure by increasing sales at the end of year.
Situational Analysis
PESTEL analysis -
Political — Political forces are very important for Walmart that are trying to expand
internationally (Yusop, 2018). The governance models and political structure of Nepal decides
the characterization done for the international business landscape. Political stability is also
affected by the new market structure when proposed for the international expansion. Sales and
supply are considered as one of the biggest sources for the diversification of market in Nepal.

The political factors thus plays an important role in identification of the new Walmart structure
which is to be set up in Nepal.
Economic — The revenue and profits of business are considered as important aspects in
economic factor. As now, people are spending more in the retail sector, it is a positive sign for
Walmart that it introduces the new market in Nepal. As Nepal has already made progress in
economic development it should also show interests in producing products through introducing
Walmart in the market structure.
Social — Social forces have an influence on the profitability of international businesses. Social
trends also influence the buying behaviour of the customers which in turn influences the
profitability of the brands. As customer demographics have changed for buying products and
utilizing services, Nepal can outgrow on this basis that Walmart in the country will produces
products and services as per the customers needs and wants.
Technological — As online businesses have grown on the large basis, Walmart when introduced
in Nepal will enhance the quality of the products and services as the technology is changing day
by day with all new innovations which have been introduced for delivering the best products to
the customers (Pan, Chen and Zhan, 2019). Artificial Intelligence and Information Technology
are two important factors which becomes success factor in retail. Through efficient supply chain,
Walmart will be able to improve customer experience while investing in technology.
Environmental — Even in retail sector businesses need to focus upon waste management,
energy consumption, packaging etc. And as environmental condition of Nepal is not very stable,
thus while introducing the new market it must check the key points of disturbance which does
not affect the environment in the future.
Legal — Non — compliance can result in poor reputation as well as financial losses. Walmart
has already faced some legal issues regarding discrimination to low wages, thus while
introducing new market the corporation should focus on making working conditions better for
staff and other legal laws should be followed.
SWOT Analysis -
Strength — Nepal has strong service sector like tourism. Due to this, there are increased
chances of products and services to be promoted and introduced within new market. The supply
chain of Walmart is globally expanded yet some countries have not experienced its products and

services. Walmart's global organizational size gives business deep pockets to fund growth and
expansion. This is the major strength of Walmart (Ofori-Nyarko, Wang and Annoh, 2017).
Along with this, Walmart has also incurred advanced technologies which will help Nepal to not
face any problem in the production and operation of products or services.
Weakness — Walmart has thin profit margins because it minimizes selling price and for that it
also needs to minimize profit margins and rely more on sales volume resulting to become the
weakness for the new market which is been introduced. Walmart also has competitive
disadvantage against high — end speciality retailers which have the upper — hand in attracting
quality — seeking buyers who have low sensitivity to price. Thus, these weaknesses reflect
business vulnerability and will face the new market when introduced in the market.
Opportunities — Walmart's opportunities are about expansion and improving business
practices. Walmart should expand in Nepal so that there are new products and services made
available to the customers (Gürel and Tat, 2017). This is an opportunity for the new market to be
introduced in the country along with variety of products and services produced. There should be
improvement in HR practices which becomes an opportunity to develop competitiveness in the
labour market and quality standards of the products when Walmart is introduced in Nepal.
Threat — As many of the products of Walmart in other countries are perceived as not healthful
or not natural, therefore, it threatens the company's business. Aggressive competition is another
threat to the Walmart when introduced in the new market structure as other retailers use
aggressive marketing strategies. Also, online retailers of various sizes like small and large
sellers, will become threat to the company once it is introduced in Nepal because these sellers
already have framed their customer base.
Marketing Strategies
The marketing strategies consist of marketing mix that are 7P's which are explained as -
Product — Walmart is mainly a physical retail brand. The company has grown its range of
offerings which are available online. Walmart sells its merchandise in three main categories'
grocery, health and wellness (Praveen, 2020). Walmart when introduced in new market must
have all the categories of products under different operating segments.
Place — Walmart is introduced and expanded in the new market segment which is Nepal.
Walmart is an international brand still some countries are under — privileged to acquire the vast

business which Walmart offers. Walmart will provide its products through stores and online
website.
Price — The pricing strategy used by Walmart is competitive pricing (Bahador, 2018). Under
EDLP or Every Day Lower Prices Walmart charges the lower prices in which consumers are
confident that the prices will not change with promotions. This aspect will help the company to
gain consumer base in Nepal for the new market to be introduced.
Promotion — Through e-commerce, company can expand its new market and introduce new
products can be made available online and offline. The company also should use its store formats
which are supercentre, discounted stores and neighbourhood markets. Through this channel of
distribution, the stores will help the consumers showcase the new products in the new market.
Marketing campaigns, Facebook accounts etc. will be the other sources of promotion of the
products.
People — The company is concerned about the employees and keep them satisfied. As Walmart
is a people — focused brand, it is more diverted towards employee specialized training
programs. This will benefit the new emerging market which is introduced for the business to
grow and expand economically (Pantano, Priporas and Migliano, 2019).
Process — Along with the external processes, the company will optimize internal processes for
improved inventory management to save time and money. This will enhance the quality of the
performance of employees and the products in the new market will achieve greater efficiency.
Physical Evidence — In the new market, products are physical evidence which includes branded
packaging, merchandize and physical infrastructure which is identified as the product presence in
the market. Some other physical evidences include private label credit cards and gift cards of
Walmart.
Entry Strategies
There are two marketing strategies to enter into a new market which is elaborated as -
Licensing — Licensing is very important process for introducing Walmart in Nepal. It will allow
the company to transfer the right to use the products and services, brand name, patents, in return
for payment. It is a useful strategy as Walmart already has a large market share in other countries
which will allow Walmart to enter into Nepal (Teece, 2018). Licensing is done for marketing and

production. This will enable the customers to use new products and services under the licensing
criteria followed by Walmart.
Joint Venture — Walmart can enter into the new market through joint venture. This will allow
the company share ownership and control over property rights and operation (Kabiraj and
Sengupta, 2018). This will also work in the joint financial strength of the companies in joint
venture. The ability to combine the strength and weakness of Walmart with any other company
will add up to the working process.
Exporting — It is the strategy which includes marketing and direct sales of domestically
produced goods in another country (Chabowski, Kekec, Morgan and et.al., 2018). Exporting will
help Walmart expand its category of products and provide a proper supply chain for exporting
the services to Nepal where the new market is being introduced.
Operational Strategies
Some operational strategies are as follows -
Continuous Development of Products/Service Offerings — For development of products and
services to enter into the new market which is being formed, Walmart should comply with the
current trends and techniques which are running in the market. After the current trend is being
identified, the company should apply it on the products and services which are being offered to
the customers. Proper strategy should be formed along with the strategic directions to be
followed. This will enable the customer engagement for long run with the company and various
other new aspects will be applied for the growth of company in the new market.
Supply Chain Management — The inbound and outbound strategic direction will help the new
market achieve higher cost advantage benefits and gain savings. Value — added services and
quality inspection will help Walmart to enhance the products and services which the company
will offer to its customers in the new market area (Gandhi, Shaikh and Sheorey, 2017). Gaining
visibility through inbound shipments will make time efficient deliveries to the consumers settled
in other countries. Outbound strategies should be changed for the new market for how to position
inventory to customers.
Bridging the Talent Gap — Managers and the employees of the company should be recruited
based on the performances managers and employees of the company offer. Talent gap should be
bridged in such a way that when the company enters the new market individuals are able to

analyse their position and work effectively and efficiently by delivering their best performance
for the growth and betterment. Walmart will also develop the internal process areas such as
inventory, accounting, productivity and management of employees for longer run.
STP Analysis — STP Analysis stands for segmentation, targeting and positioning. This analysis
allows development of a specific and actionable marketing strategy. This process segments the
audience, targets each segmented group and make positioning adjustments in the branding of the
products. This analysis is broadly described as -
Segmentation — Market segmentation is about identifying distinctive and common traits
between consumers in the market. For this, new marketing campaigns are launched for new
market which is being introduced (Makgosa and Sangodoyin, 2018). Consumer needs and wants
will be identified in the market and based on that the products and services will be made
available. Segmentation includes -
 Demographics — The products and services of Walmart will be made available to all age
groups and any gender.
Targeting — The new market will target the consumers of age group between 20 – 30. Market
targeting includes all the factors such as the best opportunities for running Walmart business,
size of the segment, whether there are significant marketers, marketing budget of the company,
accessibility of the market segment for the company (Narsaiah Rachakonda, 2017). These
aspects will help in the formation of new market and eventually will assist in growing the new
market been framed. Marketing campaigns should be formed in such a way that it introduces the
new products continuously and engages customers attention towards the newness being present.
Positioning — Positioning is done to meet the unmeet needs and desires in the market that the
product can fulfil. Through accessible tangible data about the audiences desires, positioning of
the products through those insights can be done (Rodríguez-Díaz, Rodríguez-Díaz, Rodríguez-
Voltes and et.al., 2018). A unique selling proposition will be attained which will present the right
message at the right time. Positioning will be done in such a way that the customers problems
will be identified through customer segmentation model which will reinvent the product and
innovate the campaign through different strategy. Product positioning also targets audience
which are they key source in the development of new market.

HR Strategies
There are various HR strategies among which some are -
Transparent and Regular Communications — Basic HR strategy, Walmart should adopt
while introducing its new market should be transparent and regular communications. This will
enable the company enhance the employer — employee relationships. Communication will also
help in the internal and external process to run smoothly and effectively. Transparent
communication in the new market will aid in achieving efficiency in the work and operations
framed in the organization (Olson, Slater, Hult and et.al., 2018). Thus, enabling these two
aspects of regular communication and transparency will keep the individuals in organization
remain updated to the future needs and changes.
Focus on Employee Well-being — When the new market is being introduced, HR's main
strategy should focus on the well-being of employees of the company. This will enable the
organization analyse the employees' performance along with their abilities and capacities to work
on the foreground. Employees well-being is must for the organization as employees are the key
source of the company's external and internal structure and also they depict the company's status
on large grounds.
Hiring Practices — HR strategies should concern the hiring practices which includes recruiting
and selection process to be effective and efficient on the basis of individual's performance
patterns and then selecting by placing them on the right position. Enhanced form of hiring
practices should be done which should include changes according to the plans and strategies
being framed (Stewart and Brown, 2019). Hiring methods should be adopted positively which
increases the engagement of more employees to be placed at right jobs with right talent.
Salaries and Packages — Employees of Walmart should be placed with salaries which
improves their personal life and packages in such a way that it provides benefits the employees
enabling them to manage their personal finances. Packages and salaries should be provided to the
employees based on their performance and the quality work. Different positions in the company
incur different stages of salary. Thus, this HR strategy will help manage its finances with the
employees and members of the company.
Freedom to be Creative — HR department of the organization should provide freedom to its
employer's and employees to be more creative and innovative in their work procedures and how
they perform they accomplish those tasks. Enabling employees to be more creative will increase

their way of work and generate effective results benefiting the organization on whole. Creativity
will also lead to innovative ideas for the product formation and the processes which needs
changes in the structure of the new market framed. Thus, HR Department should provide
freedom to the employees so that they are able to contribute in the processes which are being
undertaken in the development and growth of Walmart.
Budget -
ACTIVITIES BUDGET (Rs.)
Market Research 50
Owned Media (Blog) 30
Video Advertising (YouTube) 150
Social Media Advertising (Facebook) 70
Marketing Platform 60
Creative Design Software (TBD) 20
Recruitment (Full Time) 9300
Recruitment (Freelance) 40
Hardware 160
Total 9880
Monitoring and Controlling -
Monitoring the marketing strategy ensures targeting of right people in right place at right
time. Monitoring simply refers to the process of where we are and where we want to go. The
process helps in evaluating the current working operations whether they are successfully running
or not (Tishkov, Khakimova, Diasamidze and et.al., 2017). To analyse the procedures of the
marketing strategy being formed are demonstrated in monitoring of the marketing plan framed.
There are various measures through which marketing strategies and plans can be monitored -
 By checking of changes in the sales, it can be monitored whether there are any up-
gradations in the marketing plan while calculating sales and profits of the company.

Monitoring in this aspect is very necessary for Walmart as it is a large retail corporation
operating in different countries.
 Monitoring the progress also is an important aspect which will lead to growth and
development of the company.
 Comparing the strategy to competitors will help analyse the strength and weakness of the
other organizations which will prove beneficial for Walmart to be prepared beforehand
on any loss that occurs.
 Evaluating the Return on Investment helps in calculating cost of each campaign and the
man-hours that run into each campaign. This can be done by measuring the cost against
the campaign profits to determine the Return on Investment.
Controlling can be done by measurement, evaluation and monitoring. It is important to control
marketing plans because the resources are limited and costly (Spanò, Allini, Caldarelli and et.al.,
2017). Controlling is the process of setting standards which represent the quality of performance
being presented while surrounded by marketing plan or strategy. In this process, corrective
measures are taken towards the wrong representation or wrong doings in the marketing plan.
There are many approaches to control which are defined as -
 Marketing research
 Budget
 Quality control
 Feedback from customers/consumers
 Customer Relationship Management (CRM) Systems
 Activities of competitors
 Performance of promotional activities
 Market reaction
 Pricing policies
Key Performance Indicators (KPI) — KPI is defined as a measurable value that indicates how
efficiently and effectively the organization is achieving key business objectives. To reach desired
goals and targets KPI is used in Walmart at different levels of work (Aksu, Schunselaar and
Reijers, 2019). KPI at high level focuses on overall business performance. Whereas, KPI at low

level focuses on sales, HR, marketing and other departments. Based on objective, KPI can be
derived like -
 To increase sales revenue by 30%
 Profitable business will be acquired by setting this target.
 By allotting sales staff for achieving the purpose of set objective and promoting the
products to the customers.
 This process of KPI will be reviewed from month to month.
Benchmarking — Benchmarking is the process of analysing and evaluating different aspects
such as competitors products, campaigns and services which helps in differentiating the
organization from other companies and allowing improvements wherever necessary. This
process helps Walmart to set standards so that the goals and objectives which are planned to be
achieved incur success for what was desired (Adewunmi, Iyagba and Omirin, 2017). This
continuous process assists in quick actions to be taken for the growth factor to reach at the
desired goal. And in this aspect the desired goal of Walmart is to set up new market or introduce
and expand the market in Nepal. This will allow the consumers analyse their buying behaviour
and the company will be able to interpret its market position in the country.
Thus, benchmarking helps in acknowledging the competitors behaviour and encourages
the company's capabilities to move forward with effectiveness and efficiency.
CONCLUSION
Thus, it is concluded from the above report that business plan helped in analysing the
mission, vision and objectives framed for the plan. Situational analysis was explained consisting
of PESTEL and SWOT analysis. Marketing strategies constituting 7P's demonstrated the details
while introducing new market. Entry strategies assisted in evaluation of how licensing, joint
venture and exporting can be done. Various operational strategies were formed which constituted
STP (Segmentation, Targeting and Positioning) analysis. Other than these, HR strategies were
defined along with budget allocation, monitoring and controlling of marketing plan, its KPI (Key
Performance Indicators) and the benchmark aspect evaluated efficiently.

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